There is a right time for everything, there is about time to eat your lunch, there’s a time that you should go to bed, that’s the right time to shop for certain items – like a January sale for example. And there is a right time to buy real estate too. But there are a few considerations that you need to make before you dive into the real estate market. Your personal situation is going to play a big part here, but here are some other considerations that you need to make before investing in real estate.
Income
Just how stable is your income? If you own a small business or large company and it’s doing well, it’s very easy to get carried away and decide that you want a piece of the property pie immediately. But does that mean in six months time you’ll still be doing as well? Although in reality, we can’t ever really say for sure that our job and/or business, will always be doing well. You need to have a really clear idea of your future earnings. Or at least have the savings to help you if something did happen.
Life
Your life situation can change very quickly. One moment you can be single, and the next you can have a life partner and children. And so when it comes to real estate if it’s an investment for yourself you may have to consider the future ‘you’.
Which means you might need to buy a more significant property than you currently need. And you should also consider if you want to travel, or eventually settle somewhere else in the world.
Goals
It is often the case that people will buy a property with the intent to do it up and sell it on or only as a long-term investment which will help on the way to retirement. You need to make sure that you know all of the ins and outs of this legally, and this might be where a real estate attorney can help the whole process go smoothly.
Credit Score
Your credit score is going to determine the interest rate that you will be able to get on your mortgage if you can get approved for a mortgage. A few points up and down on your interest-rate can literally be thousands of dollars of the lifespan of your mortgage.
Try to make sure your credit score is what you wanted to be before you apply for the mortgage. There are lots of tips online about how you can raise your credit score.
Market
If you are tracking house prices already when you are off to a great start. Use historical data to make future productions. If the prices have gone down, and your finances are going up then you could find yourself in the dream position.
However, the other way around you might want to hold off a little while so you can avoid buying into a bubble.
It doesn’t really matter if you’re considering buying real estate for yourself or just for investment purposes, you should consider the factors above before making a decision.
